Mashonaland Holdings Limited’s profit after tax rose 14% to US$1.80 million in the six months to June 2026, supported by higher rental income, new tenant onboarding and tighter cost management.
Revenue increased 7% to US$3.91 million from US$3.66 million in the comparative period, while operating profit jumped 27% to US$1.93 million, according to the group’s unaudited interim financial statements.
The property company’s overall portfolio occupancy improved to 89% in June from 88% in the previous period, while rental collections stood at 93%.
Chairperson Eng Grace Bema said the group benefited from an improved operating environment during the first half of the year.
“Zimbabwe’s operating environment improved during the first half of 2026, supported by moderating inflation, relative exchange-rate stability and improved foreign-currency inflows,” Bema said.
However, the company said the property sector continued to face challenges, particularly high construction costs and limited access to affordable long-term financing.
“Development activity remained constrained by high construction costs, infrastructure requirements and limited access to affordable long-term funding,” Bema said.
The group’s investment property portfolio increased to US$96.4 million from US$94.7 million at the end of December 2025, driven by capital improvements and fair-value gains following a mid-year valuation.
Pomona Commercial Centre recorded new lettings during the period and closed the half-year at 75% occupancy.
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The company said the property was “on course to achieve full occupancy before the end of the year.”
At 126 Coronation Drive in Greendale, civil works for a proposed 30-unit residential cluster development reached 95% completion, while the project moved through the statutory approval process.
The Shurugwi Residential Stands Project also progressed, with surveying completed and engineering work having commenced.
The group plans to begin servicing and phased pre-sales of the Shurugwi stands during the second half of the year.
Bema said the company was entering the second half of the year focused on increasing occupancy, retaining tenants and commercialising its development pipeline.
“The Group enters the second half of the year with a strong focus on enhancing tenant satisfaction, improving tenant retention and increasing occupancy across the portfolio,” he said.
The company said planned pre-sales for its development projects would provide an important step towards unlocking value from its pipeline.
“While some market risks and market wide funding constraints remain, the Group remains positive about the opportunities ahead,” Bema said.
Shareholders also approved the reintroduction of the company’s share buy-back programme at the Annual General Meeting held in June, with implementation to be considered against the group’s development commitments.
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